What is E-Ruppe? Will It Replace CryptoCurrency?

                            What is E-Rupee?                  Is it a danger to CryptoCurrency ? Hello my dear friends, I hope you all are d...

 

                         What is E-Rupee?

               Is it a danger to CryptoCurrency?

Hello my dear friends, I hope you all are doing well. Today I will discuss what is E-Rupee & and how can it replace the need for De-Fi(Decentralized Finance) or CryptoCurrency or will it really replace De-Fi?

                                             So let's start Investing With Ease.

⦿ Before getting into the main point we have to understand what is the E-Rupee and how it works.

⦿ What is E-Rupee?

It is a cashless medium that will be issued by the Indian Government. The system is created by NPCI(National Payments Corporation Of India) on its UPI platform and has onboarded banks that will be issuing entities.

➤ A small definition for those who don't know what is De-Fi, it is basically a currency that is decentralized, which means this currency is not regulated by any Govt. authority also there is no central bank that's why it is decentralized.

If you want a separate blog over this, then comment down and if I get enough responses, I will surely write a blog over it.

⦿ How it works?

E-Rupee works with QR-code(Quick Response Code) or if someone doesn't have a smartphone then they will get SMS on their phone. This QR code or the SMS will be made by NPCI or banks. And then when Govt or someone needs E-Rupee they will contact banks or NPCI then they will get a QR-code or SMS for themselves and also for the receiver, in the meantime the issuer will also store the same code because if some dispute happens then the issuer will resolve the problem.

⮞Example: If person 'A' buys an E-Rupee card then the card issuer will create 3 codes of the card, 1 code will give to the person 'A', 1 code will receive the beneficiary and the last code will be stored in the issuer server. The 3rd will be stored in the issuer server because if any of them made any false claim then the issuer will resolve the problem.

➤ The QR-code works really fast, and it is quite different than digital currency.

⦿ Security of the payment system:

First of all, it's backed by the NPCI & banks so we can say that it is really secure than other digital currencies.

Here I take an example to explain this clearly,

⮞Example: If Govt. of India wants to send some subsidy to a farmer or to a worker, then the Indian Govt. will directly contact the NPCI and tell them to create QR-code or SMS code. After creating the code One code will be sent to the beneficiary, one code will store in NPCI's server. Then the last code will be sent to the service provider.

→ If Govt. sends it to a farmer for buying some seeds, fertilizer, or anything else, then one code will be received by the farmer, one code will be sent to the fertilizer & seeds shops in the whole country. By this, the farmer cannot use the voucher for any other means.

➤ By this, it is very secure and cannot be used in any other place. And the purpose of the voucher will also be fulfilled. Govts. can use this for welfare schemes and other expenses & others can use it like gift vouchers and all.

⦿ Is it a threat to CryptoCurrency or to De-Fi?

➤ First, we have to understand the difference between E-Rupee, CryptoCurrency & De-Fi.

These have their own agenda and uses, we know there are many different Cryptocurrencies available in the market with their own agendas, we are not discussing that topic, if you want to know how to invest in Cryptocurrency and how its works then you must visit my this blog 🠊 CryptoCurrency we also write the second part of it, so you must check it out.

➤ Differences:

1) The most important and the basic difference is E-Rupee is centralized and Cryptocurrency is decentralized. But still, both are really secure if we use them carefully.

2) Now both have their own use, E-Rupee or any other currency like this are only usable like gift vouchers or just simple vouchers which have some specific works or I must say some specific usage.

But in Cryptocurrency or in De-Fi they have various types of usages, we can buy something with them, we can transfer money from one country to another country. We can trade in Cryptocurrency, or we can invest in them like digital gold.

3) Now Cryptocurrency can be created by anyone or any organization, where these currencies are Govt. backed and it can only be created by Govt. of any country.

As there are too many Cryptocurrencies and they all have their own agenda and they are also solving some problems with them. Now, these Govt. backed currencies also have their own uses but with some limitations right now. Every country's Govt. can create its own digital currency which will create the same scenario right now with fiat currency.

🠊 As we saw the differences above, now we can clearly say that both have their own pros and cons. And after analyzing each side, till now these digital currencies are no threat to Cryptocurrency or De-Fi.

⦿ Conclusion:

⦿ Till now, the digital currencies that are created by any county's Govt. is a new thing and we didn't see its much usage right now, so it is not the best time to judge.

Also, Cryptocurrency has a huge fan base & also it attracts many people to invest in it, some countries thinking to legalize it(Check my blog: Cryptocurrency: How To Survive In A Bear Market? for more details) we must say Cryptocurrency and De-Fi are going nowhere.

➤➤That is it for today guys. We will see you in the next blog, and I will try to post as fast as I can. Till then bye-bye😃😃.

Editor:  Sk Elaf Ahmed, Rupak Chowdhury.